Note that the article covers the period until the start of 2023. In the meantime, we would like to ask that feedback on the content would be provided via [email protected] email. Economic Calendar Analysis
The mid-December week will end with the publication of Markit Services and Manufacturing sector Purchasing Managers Index survey data. Note that most impact occurs due to the French and German data at 08:15 and 08:30 GMT. The European data is followed by US data at 14:45 GMT.
On December 23, look out for the US Core PCE Price Index at 13:30 GMT. This indicator is used by the US Federal Reserve as the main measure of inflation. Deviations from the forecast are bound to cause adjustments in the US Dollar's value.
During the last week of the year, there are no notable scheduled events that might impact the FX market.
XAU/USD short-term forecast
A continuation of the decline of the commodity price could look for support in the 1,763.55/1,766.15 zone, before the 1,750.00 level or the previous low levels at 1,744.75 and 1,739.40 are reached.
On the other hand, a recovery of the price could encounter resistance in the 50, 100 and 200-hour simple moving averages near 1,785.00/1,790.00. Higher above, note the resistance zone at 1,803.30/1,809.85 and the December high at 1,824.50.
XAU/USD daily charts review
On the daily candle chart, the metal has pierced the 1,787.05/1,808.15 resistance zone. The zone held the price down since mid-November. Higher above, note the June high of 1,880.00. However, other round price levels acted as support and resistance throughout May and June.Daily Candle Chart
Traders are neutral
In the aftermath of the interest rate cut, traders had become 51% short and pending orders in the 1000-pip range were 50% to buy and 50% to sell.